Correlation Between FT Vest and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both FT Vest and Amplify Cash at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FT Vest and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Vest Dow and Amplify Cash Flow, you can compare the effects of market volatilities on FT Vest and Amplify Cash and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in FT Vest with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Vest and Amplify Cash.
Diversification Opportunities for FT Vest and Amplify Cash
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FDND and Amplify is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Dow and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow and FT Vest is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on FT Vest Dow are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of FT Vest i.e., FT Vest and Amplify Cash go up and down completely randomly.
Pair Corralation between FT Vest and Amplify Cash
Given the investment horizon of 90 days FT Vest Dow is expected to generate 1.43 times more return on investment than Amplify Cash. However, FT Vest is 1.43 times more volatile than Amplify Cash Flow. It trades about 0.08 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about -0.12 per unit of risk. If you would invest 2,207 in FT Vest Dow on October 23, 2024 and sell it today you would earn a total of 76.00 from holding FT Vest Dow or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Vest Dow vs. Amplify Cash Flow
Performance |
| Timeline |
| FT Vest Dow |
| Amplify Cash Flow |
FT Vest and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Vest and Amplify Cash
The main advantage of trading using opposite FT Vest and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest position performs unexpectedly, Amplify Cash can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amplify Cash will offset losses from the drop in Amplify Cash's long position.| FT Vest vs. Global X Dow | FT Vest vs. AdvisorShares STAR Global | FT Vest vs. Global X Funds | FT Vest vs. Natixis ETF Trust |
| Amplify Cash vs. Global X Dow | Amplify Cash vs. AdvisorShares STAR Global | Amplify Cash vs. Global X Funds | Amplify Cash vs. FT Vest Dow |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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